US: Dollar Stabilizes as Fed Meeting Eyed.

The US dollar index held steady near 101.7 on Thursday, pausing its recent decline as investors prepared for next week’s Federal Reserve policy meeting, where interest rates are widely expected to remain unchanged. Chair Kevin Warsh’s remarks last Friday did little to shift expectations for a rate hold, although markets continued to anticipate a possible rate hike in December amid persistent energy-driven inflation. The European Central Bank and the Bank of Japan are also expected to leave rates unchanged next week. Meanwhile, recent economic data pointed to signs of weakness in the US economy, with September housing starts declining and pending home sales falling to a record low. Oil prices also climbed following a drone strike on Saudi Aramco’s Shaybah field that killed two people, while the US ordered some personnel and family members to leave American embassies in Saudi Arabia, adding to concerns over inflationary pressures.